TTI's proposed acquisition of Flightspares tells us that the period of rationalisation in the electronics distribution market has not yet finished.
The phase of acquisitions which has seen large broadliners snapping up local distributors probably started away back in 2005 with Avnet's purchase of Memec.
It carried on with regular acquisitions through 2006 to 2008.
It may have slowed last year in the teeth of the downturn. But TTI's move for Flightspares tells us that it has not gone away.
The downturn has inevitably lowered selling prices.
So now as the larger companies enter 2010 with slightly more healthy balance sheets they could well be on the look out to add lines and customers through acquisitions.
In the last six months Avnet has bought most of Spectre Communications, a UK-based wireless distributor with a CSR franchise and Acal bought BFI Optilas for its high margin specialist opto business.
Now TTI is acquiring Essex-based Flightspares to reinforce its commitment to the Tyco connector line.
The message seems to be that the big broadliners still have their radars on, and they are looking for companies with lines, customers or other skills they could use.
Last September, Premier Farnell bought Cadsoft to support its online activity, the element14 community site.
But there has yet to be a significant internet business acquisition in the distribution market.
My guess is that this is probably the area where the next distribution deal will be done.
It carried on with regular acquisitions through 2006 to 2008.
It may have slowed last year in the teeth of the downturn. But TTI's move for Flightspares tells us that it has not gone away.
The downturn has inevitably lowered selling prices.
So now as the larger companies enter 2010 with slightly more healthy balance sheets they could well be on the look out to add lines and customers through acquisitions.
In the last six months Avnet has bought most of Spectre Communications, a UK-based wireless distributor with a CSR franchise and Acal bought BFI Optilas for its high margin specialist opto business.
Now TTI is acquiring Essex-based Flightspares to reinforce its commitment to the Tyco connector line.
The message seems to be that the big broadliners still have their radars on, and they are looking for companies with lines, customers or other skills they could use.
Last September, Premier Farnell bought Cadsoft to support its online activity, the element14 community site.
But there has yet to be a significant internet business acquisition in the distribution market.
My guess is that this is probably the area where the next distribution deal will be done.
Follow Richard Wilson on Twitter for news and opinion on everything from efficient C++ compilers to the lasting legacy of rock music 1971-1985.
Leave a comment